Ocado Group (OCDO) could soon launch a rapid response delivery service in the US to take on fast-growing rivals such as Uber Eats and American technology start-up Takeoff. It would be similar to the company’s fledgling Zoom service, currently being tested in West London, which delivers to the door in less than an hour. Ocado finance director Duncan Tatton-Brown is understood to have presented the idea to potential investors at a meeting in Barcelona. He said the plan could form part of the company’s ‘developing’ relationship with $120billion (£93billion) retailer Kroger and would cater to the growing demand for same-day delivery in major cities. The launch of Ocado Zoom – first revealed by The Mail on Sunday in February – allows shoppers to order food costing as little as £15 compared with a minimum of £40 through its main service.
Virgin Money Holdings (UK) (VM.), the challenger banking group formerly known as CYBG, is this week set to follow other banks and report a large dent in profit from PPI claims. The lender, which is shedding its less trendy Clydesdale and Yorkshire Bank brands in favour of Sir Richard Branson’s famous Virgin name, is expected to reveal a £254million loss in its full-year results on Thursday after being flooded with claims ahead of the deadline in August. Virgin is also forecast to say competition in mortgages drove a two per cent drop in revenues to £1.65billion for 2018/19. CYBG acquired Virgin Money for £1.7 billion last year. It is rebranding stores with the Virgin logo and has changed its name to Virgin Money UK on the London Stock Exchange.
Banking giant Lloyds is slashing 416 jobs to cut costs. Lloyds Banking Group (LLOY) said it is creating 180 jobs in other parts of the bank. But that still leaves it with 1,122 fewer staff overall than a year ago. The bank is trying to reduce its total costs by more than £200million this year as it struggles to raise revenues due to low interest rates. Lloyds has also shut 112 branches, leaving some communities without any bank branches at all. The latest job cuts will affect its retail and commercial divisions and will hit a mixture of operational, back office and front office staff.
Marks & Spencer Group (MKS) has poached a Tesco executive to run its troubled clothing department. Richard Price, who runs Tesco’s F&F brand, will take over as managing director of clothing and home at M&S in the new year. He was previously M&S’s menswear trading director for four years until he left in 2012, before which he was the group’s head of merchandise. The move comes after M&S chief executive Steve Rowe took direct control of the clothing and home division when former managing director, Jill McDonald, left in the summer.
Land Securities Group (LAND), which owns the Westgate shopping centre in Oxford, Piccadilly Lights in the West End of London and Brighton Marina, has announced it has hired a new boss one week after post a half-year loss. Mark Allen, chief executive of St Modwen Properties, will take on the top job by no later than 1 June next year, but current boss Robert Noel will stay on at the firm ‘for the time being.’ Mr Allen will rake in a base annual salary of £800,000, and, as well as other benefits, get a £12,000 annual car allowance and be eligible for a £200,000 ‘one-off cash relocation payment.’ Subject to meeting performance conditions, Mr Allen will also be eligible to participate in Landsec’s Long-Term Incentive Plan, with a ‘maximum annual award of 300% of base salary.’
MIDAS SHARE TIPS: Want to safeguard YOUR shares from Corbyn? Stick to the many, not the few! MIDAS VERDICT: Labour is proud of its radical promises. But the effect on ordinary investors and savers would be pernicious if the party gained a majority next month. Fortunately this is unlikely so shareholders would be unwise to up sticks and sell out now. But they should bear in mind that the best portfolio is a diverse portfolio – that means holding shares in a wide range of companies, with business interests in and beyond the UK.
